I had experimented day trading had following this week, I won’t be tempt to do any day trading anymore until I get my trade completed in HZU, HOD, HZD and FR (until I decided to sell at profit). It’s something I need to experience for the heck of it. I could have sell HOD this Friday as well as HZD, but I decided to wait. I could had sell, but at no profit, even at a little loss. But I decided to hold until a better opportunity come because despite very high of margin account usage, my portfolio is strong enough to support it. I reached the extreme limit of what I could handle. Day trading more at this time would be very dangerous.

Day trading had been fun for the time it last, but day trading during the day does not leave any free time to do anything else during the day. Currently, I still hold HZU, HOD, HZD and FR but I have to say, this situation is not easy to handle because my goal was to sell on the same day when the purchase was made but in 4 times now, my timing was wrong. So will I do day trading again in a close future? NO WAY... Because it’s very disappointing when a sell cannot be done on the same day. Timing the stock market is way too much dangerous. On Friday at a time, HZU AND HZD went down around the same time. But usually, when one is down, the other is up... But that didn’t happen exactly like that on Friday... and also, HOD, I could have sell. At a point, HOD reached the original 6.65$ at which I had purchased it, but if I would had sell at that time, I wouldn’t had made any profit, and on top on that, i would had left something to pay on for the 9.99$ broker commission fee. All this today that what was fun at the beginning turn into something very handicapping, in the sense that I cannot concentrate on blogging or doing anything else during day time now until I sell HZU, HOD, HZD and FR. Because I need to there in front of my laptop to monitor the stock market and see if a price eventually reach my standard and then sell... I could set an automatic sell order of course, but the stock market being so out of control, it could happen I miss the sell by just one cent. Example, I set myself a sell limit price of 7$ for HOD. During the day, HOD hit the 6.99$ and not the 7$, well, too bad, but the sell order if being set for 7$ won’t go through... Frustrating... yes... But also, another problem being a question of timing as well from my part, it could happen a miss a sell opportunity because I am not quick enough but so far, I had been pretty good for that part and TD Waterhouse trading platform is extremely reliable, really excellent for day trading.

All this could be seen as very stupid coming from my part but fact is, I was looking to generate small profit only to add to my dividend income. But now, everything is pretty much out of control.

Well, not exactly because if you ask me if I can do a profit out of Horizons BetaPro COMEX Silver Bull Plus ETF (HZU), Horizons BetaPro NYMEX Crude Oil Bear Plus ETF (HOD), Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) and First Majestic Silver Corp (FR), well, my answer is yes, definitively, I will be able to generate a profit out of those investments. I am very confident about that. It’s just it’s something very difficult because during day time, I need to monitor minute by minute all of those 4 investments to see if a good sell opportunity is presenting. While doing so I cannot blog, I cannot write article for HubPages, I cannot go to the library, I cannot go take a walk to the park. I have to stay home dirty in my pyjama and all day long, all I do is refresh, refresh, refresh. Sound interesting? Truly not. Especially now with the wonderful weather we are having now in Montreal. But this was the price to pay for the willingness to make money from day trading. Do I enjoy day trading now? No, truly not. After spending the day in front of my laptop, I have to go to work for my evening shift. Hello misery!

There’s no easy way and my day trading experience have basically become a nightmare. I am not afraid to say it as clearly as that. But, the nightmare is not that bad. I do what I wanted, which was to experience the day trading and I personally needed to go through this because the temptation to make money was way too high. It’s something I may do again however, but with one investment at a time. Like right now, I am stuck with 4 day trading investments and it’s kind of becoming too much. So if it happens I want to satisfy myself again with a disturbing sense of wanna-make-money-from-day-trading ever again, it will be one investment at a time. Not 4 at the same time. Never again ok, never again.

I had been a bit disturb by my fantastic Sprott Canadian Equity Fund who had loss more than 1 000$ in value. I am basically back close to the original 7 000$ I invested in the fund back in 2008 and I don’t like that at all. Also, my portfolio had loss some great value because my fantastic Sprott silver had loose value. I hold Sprott silver in my RRSP, TFSA and now, in US dollars. So yeah, Sprott silver all the way, ok, but I want profit. Is that hard to understand?

lol...

But you have to understand me. I had been holding Sprott silver since November 2010. Between November 2010 and April 2011, silver had rock my world. I had purchased, sell, purchases Sprotts ilver units. I was in heaven. My units hold in Sprott Physical Silver Trust UTS (PHS.U) worth SO MUCH at that time! It was so fantastic. From 22$ to now the 16$ per units, yeah, the silver correction had hurt the value of my portfolio.

I was very happy when I listen to Eric Sprott latest interview (that you can listen in post below). All what he said make so much sense, was making so much sense that the only thing right I find to to was to invest in Sprott Physical Silver Trust ET (PSLV) again. And so I did, and I don’t regret it. Silver will gain value again, but it could be at a much lower rhythm than before. When silver will hit again, my portfolio will hit the net worth of 90 000$. I am just waiting for that to happen

Regarding my investment in Sprott Canadian Equity Fund that went from 8 000$+ to the current 7 000$+, well, I don’t really know what to think about it. It could be the sign that the market is not doing well and that another correction is on its way but I don’t really know what to think. However, Sprott Canadian Equity Fund is one of my top performers. I couldn’t imagine my investment portfolio without it.

I taught about selling what I hold in TMX Group Inc. (X) in order to decrease my margin account usage but it’s really not the time to sell TMX Group Inc. (X) because the company had refused the Canadian offer that been done in other to acquire them. This meaning that the deal with the London Stock Exchange is still ongoing and I am very excited because if it continue like this, TMX Group Inc. (X) could eventually reached the 50$ per stock and when it happen, hello big cash for me.

Patience will eventually pay off when it comes to TMX Group Inc. (X) as well as my experiment with day trading.

Knowing that, I have a major announcement to make. I know, I am crazy, but on my Friday, I invested again in Exchange Income Corporation (EIF). Why? Well, according to a source, Exchange Income Corporation (EIF) could eventually hit the 25$ per stock so I could not resist. I invested again in Exchange Income Corporation (EIF). But this is the last of the last, I will no longer invest for a little while, I am totally totally done.

Me and investment, is like famous Hollywood people and plastic surgery: it’s being done, done and redone. Never get enough. But now, I have enough despite knowing I can get what I want.

4 comments:

Anonymous
said...

Well it sounds like you're learning a lot. My suggestion for getting out of your bad day trades is to pick whether you want to be long or short silver right now, and sell either HZD or HZU first thing in the morning. Every day that this pair of holdings sits in your account, you lose money (no matter what happens with silver). Don't try to avoid a loss on both of them, it will be pretty much impossible to do at this point.

I don't plan to sell and loose money. My day trading picks are not bad pick, they are just subject to volatility, like any other holding. I just sell HZU at 10.22$ at profit today. I will be selling HOD and HZD if not today, at a later date and it will be as well at profit.

Ok, I understood that already. I sell HZU today, and I will sell HZD and HOD at a later date. That's all. When one is up the other is down. Now, I am waiting for HZD to go up. The market is so volatile, it won't be long before HZD go up again. As for HOD, my investment in it is really small, I don't mind holding for a while.

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About Me

I am a French Canadian, New Brunswicker. On August 5th, 2009, I reach my goal, which was to have 50 000$ in investment assets. My larger goal is to reach financial freedom and, if not retired early, at least live happily with my money and be able to reach my objectives. It's all have to begin with a first 50 000$. My email, if you like to say hello: myfirst50000 (at) yahoo.ca